Cents and Sensibility - Kimberly and Friends' Consortium Message Board

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: WhatsUpWithThat who wrote (67598)	1/26/2000 5:19:00 PM
From: ciVic	Read Replies (3) of 108040

WUWT ok so if you are right.....let's say I'm a ship builder. I get a contract to biuld a ship worth 10M and it will take me 2 years. Are you telling me I can only realize revenue when I sell it after 2 years? sorry...I need to match my expenses with my revenues and so I release aprox 1.25 M per quater (asuming I am biulding 12.5% a Q) or else I would show I had HUGE expenses for 2 years...and then one HUGE sale...so I would have a loss each Q for 2 years...so stock worth jack all..then after 2 years I have a 10M revenue? not likely EDIT - all depends on the kind of business you do...and therefore it is up to the company to match revenues to expenses so the balance sheet looks decent ciV

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